THE Philippines has maintained its position in an annual global competitiveness ranking after falling four places last year, data released by the Switzerland-based International Institute for Management Development (IMD) showed on Tuesday.

At 52nd, it was in the bottom fourth of a list of 67 economies (the list last year was shorter at 64) and remained next to last — 13th out of 14 — among its peers in the Asia-Pacific region.

The country improved in terms of government efficiency, gaining three spots to 49th and stayed in 40th place with regard to economic performance.

It fell three spots, however, to 43rd in the area of business efficiency and saw its infrastructure ranking slip to 61st from 58th last year.

Challenges this year, the IMD noted, involve sustaining job-generating investments, ensuring food security to control inflation and keep prices affordable, addressing learning gaps to improve the educational system, building sustainable infrastructure in light of climate change and resolving the country's rights to the West Philippine Sea.

Broken down further, the Philippines had its worst score in the area of education — a sub-factor of the infrastructure ranking — at 63rd, down one spot from 2023. It also saw its basic infrastructure position slip to 62nd from 58th.

Its best scores were in the areas of tax policy — 15th from 14th last year — and employment — 10th from 9th. The former is a sub-factor of the government efficiency score while the latter is part of the economic performance measure.

Infrastructure drive

Asked to comment, Socioeconomic Planning Undersecretary Joseph Capuno said the government was hopeful of addressing the infrastructure issue with the full implementation of a Palace order streamlining the project approval process.

Socioeconomic Planning Undersecretary Joseph Capuno. Photo from National Economic and Development Authority FB page

President Ferdinand Marcos Jr. issued Executive Order 59 in April, and its implementing rules and regulations were released by the National Economic and Development Authority and the Anti-Red Tape Authority on Tuesday.

The government wants to eliminate unnecessary delays in the issuance of licenses, clearances, permits and authorization of infrastructure flagship projects.

"Aside from permitting and processes, I believe that right-of-way issues are also included. It might concern legal or budgetary matters that are outside the scope, especially budgetary matters, which are outside the scope of Executive Order 59," Capuno told reporters.

"These are other areas we need to address to enhance not only implementation but also budgeting for infrastructure, and I think these other concerns contributed to our lower ranking in competitiveness and infrastructure indices," he added.

"But moving forward, we hope to inch a bit higher in that ranking."

Most competitive

Singapore — 4th last year — reclaimed first place in the 2024 competitiveness ranking, a position it last held in 2020. Switzerland gained a notch to 2nd while Denmark, which was first for the last two years, slipped to 3rd.

Smaller economies dominated the top 10, which the IMD said was an indication that economic competitiveness is "not a question of size."

Singapore's rebound was said to be due to robust performances across the four main competitiveness factors, while Switzerland was lifted by improvements in economic performance and business efficiency.

Denmark's drop was due to a decline in economic performance — "insignificant" according to researchers — and the country was still said to be a "poster child of competitive economies."

Emerging markets were said to be catching up with more advanced economies, particularly in the areas of innovation, digitalization and diversification.

The IMD noted that China, Brazil, Indonesia and Turkey had become essential players in terms of trade, investments, innovation and geopolitics, while Malaysia, Thailand and Chile were highlighted as stable and improving.

Ghana, Nigeria and Puerto Rico were the new entrants to this year's expanded list of 67 economies.

Changing times

Arturo Bris, director of IMD's World Competitiveness Center, said, "We believe the most competitive economies of the future will be those able to anticipate and adapt to this changing global context while simultaneously creating value and well-being for their people."

"And that will also make them sustainable," he added.

The major competitiveness challenges for world economies this year and beyond, the IMD said, are transitioning to a low-carbon and circular economy, being mindful of emerging markets' increasing integration into the world economy and keeping up with digital transformation.

Executives and managers surveyed by the IMD ranked the adoption of artificial intelligence (AI) (55.1 percent) as having the greatest impact on business this year, followed by the risk of a global economic slowdown (52 percent) and geopolitical conflicts (36.1 percent).

"AI adoption is one thing, but its use could well be another," the IMD said.

This year ranking utilized survey data and statistical information regarding 164 factors. The survey was conducted between March and May this year, and involved 6,613 C-level and mid-level managers from the 67 economies.

Read The Rest at :